Malaysia, Johor say no to reviewing raw water rates with Singapore for now

A minister says that Malaysia and its southern Johor state will not be negotiating the cost of fresh water with Singapore at this time. &nbsp,

The Johor chief minister ( Onn Hafiz Ghazi ) and the ministry agreed that the review of raw water rates should not be negotiated at this time, according to Malaysia’s deputy energy transition and water transformation minister Akmal Nasrullah Mohd Nasir, who addressed the parliament on Monday ( Dec 2 ) on Monday. &nbsp,

MP for Pasir Gudang Hassan Abdul Karim asked Mr. Akmal to respond to a question from Pasir Gudang Hassan Abdul Karim, asking if the state would consider reversing the terms of the Johor River Water Agreement in 1962.

The Johor River water supply is expected to reach 250 million gallons per day ( mgd ) thanks to the agreement.

Singapore pays 3 Indonesian sen per 1,000 gallons of fresh water, and it pays 50 sen per 1,000 gallons, which is less than the cost of treating the waters.

Singapore has been providing 16 mg of treated water to Johor at its request, as confirmed by Foreign Affairs Minister Vivian Balakrishnan in March 2019 and reconfirmed by Malaysia’s Mr. Akmal on Monday ( Dec 2 ), while Johor is entitled to a daily supply of up to 5 mgd per day of treated water, which accounts for 2 % of the water supplied to Singapore.

In a New Straits Times report, Mr Akmal said the higher supply amount incurred an additional cost of approximately RM180, 000 ( US$ 40, 313 ) annually for Johor. &nbsp,

He also cited Malaysia’s savings in purchasing treated water from Singapore at a cost of 50 senator, citing how it is able to purchase it for that price.

” For assessment, treating the same amount of liquid locally may cost around RM1.80 per square inch, while the treated ocean we buy from Singapore costs about 11 senator per square metre”, he added.

Before making any fresh changes, the deputy minister claimed that Malaysia must have the capacity to produce treated waters in Johor in order to achieve “net-zero dependency.”

This was in response to a different political question from a Rompin Abdul Khalib Abdullah MP who expressed concern about the financial repercussions of selling raw water to Singapore at what is thought to be a subsidised rate.

If the contract is to be continued without any modifications, he also made reference to the long-term effects on Johor’s water resources. &nbsp,

” Johor will also need treated water from Singapore”, Mr Akmal told congress. &nbsp,

The Indonesian government has launched the Zero Dependency initiative, which includes installing river water reservoirs in the Johor River as well as liquid treatment plants, to reduce Singapore’s dependence on treated water. &nbsp,

” These projects aimed to boost water storage capacity, allowing Johor to meet its long-term water needs independently, but achieving zero dependency by 2030 may be challenging due to the growth of industries such as data centres and semiconductors”, Mr Akmal explained.

Malaysia had earlier announced that all water deals were under review, following officials ‘ concerns over” subsidies” to the Lion City.

Local media reported in July that Deputy Prime Minister Fadillah Yusof stated that the government would be reviewing all existing agreements involving the supply of raw water.

Former prime minister Mahathir Mohamad’s assertions that the agreement had cost the government a significant sum, which he perceived as a” subsidy” to Singapore were reiterated by Mr. Fadillah, who is also the Minister of Energy Transition and Water Transformation. &nbsp,

” Whether Malaysia has been providing a subsidy ( to Singapore ) or not, we are reviewing all the existing agreements”, Mr Fadillah said on Jul 16.